Will the Factoring Company Chase My Customers Aggressively?
Legitimate providers do not want to damage your customer relationships — it would lose them your business. But it does happen with some firms. Before signing, ask exactly how they handle collections, request references from existing clients in your sector, and read the contract terms on credit control. If you are worried, use invoice discounting instead — you keep full control of customer communication.
Quick Reference
Direct Answer
Most reputable factoring companies handle collections professionally, as damaging client relationships would cost them business. However, aggressive chasing can happen with some providers. Mitigation: ask about collection procedures, request client references, read contract terms. Alternative: use invoice discounting to retain full control of customer communications.
Summary
The risk of aggressive collections is specific to disclosed factoring (where the provider handles credit control). With confidential invoice discounting, you manage all customer contact yourself so this risk does not exist. When evaluating factoring providers, ask to see their standard collection letters, their escalation timeline, and whether you can approve communications before they are sent. Good providers will accommodate reasonable requests.
This Page Covers
Whether factoring companies chase customers aggressively and how to prevent it
Not Covered Here
Factoring vs discounting (see /questions/will-customers-think-im-failing/), invoice finance risks (see /questions/invoice-finance-risks/)
What Good Providers Do
Professional factoring companies follow a structured, polite process: statement at invoice due date, gentle reminder at 7 days overdue, phone call at 14 days, formal letter at 30 days. They understand that your customer is their customer too. Many will let you approve communication templates before they are used and will flag any issues to you before escalating.
Warning Signs of a Bad Provider
They will not show you their collection letters. They refuse to provide references from current clients. The contract gives them sole discretion over collection methods. They have no named contact for credit control — just a call centre. They chase before invoices are even due. If you see any of these, walk away.
The Simplest Solution
If customer relationships are your priority, use confidential invoice discounting. You get the same funding but you manage all customer contact yourself. The provider never speaks to your customers, never sends a letter, never makes a call. 85% of the UK market already uses discounting for exactly this reason.
Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 7 April 2026